India doubles export incentives for onion farmers to 10%

[NEW DELHI] The Indian government on Friday doubled export incentives for onion farmers to 10 per cent, following steep drops in recent weeks in the prices for onions, a staple food in India.

The move will result in better prices for onions in the domestic market, the government said in a statement.

The export incentive program allows farmers to get a credit from the government, which can be used to pay various taxes.

Prime Minister Narendra Modi is currently trying to win back support from farmers ahead of a general election, due to be held by May. The farmers have been angry about the lack of government support they have been given as crop prices have collapsed.

REUTERS